问题如下:
Which of the following best describes a negative bond covenant? The requirement to:
选项:
A. insure and maintain assets.
B. comply with all laws and regulations.
C. maintain a minimum interest coverage ratio.
解释:
C is correct.
Negative covenants enumerate what issuers are prohibited from doing. Restrictions on debt, including maintaining a minimum interest coverage ratio or a maximum debt usage ratio, are typical examples of negative covenants.
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